September 26, 2012
Department of Labor
Hilda L. Solis, Secretary of Labor and Chair of the PBGC Board of Directors
Phyllis C. Borzi, Assistant Secretary of Labor, Employee Benefits Security Administration
Hilary Duke, Division Chief, Office of Policy and Research, Employee Benefits Security Administration
Nicole Swift, Employee Benefits Law Specialist, Employee Benefits Security Administration
Department of the Treasury
Mary J. Miller, Under Secretary for Domestic Finance
Sandra Lee, Senior Advisor to the Under Secretary for Domestic Finance
Philip Quinn, Senior Policy Analyst, Office of Financial Institutions Policy
Matthew Carey, Policy Advisor
Department of Commerce
Rebecca M. Blank, Acting Secretary of Commerce and Deputy Secretary of Commerce
Mark Doms, Chief Economist
Rick Lattimer, Policy Analyst, Economics and Statistics Administration
Ann Orr, Chief of Staff
Laricke Blanchard, Deputy Director for Policy
Vince Snowbarger, Deputy Director for Operations
Patricia Kelly, Chief Financial Officer
Alice Maroni, Chief Management Officer
Rich Macy, Chief Information Officer
Michael Rae, Acting Chief of Negotiations and Restructuring
Judith Starr, General Counsel and Secretary to the Board
PBGC Office of Inspector General Rebecca Anne Batts, Inspector General
Joseph Marchowsky, Assistant Inspector General for Audit
Curtis Flood, Assistant Inspector General for Investigations
Pat Byer, Partner, Clifton Gunderson (PBGC Audit Firm)
The Chair called the telephonic meeting to order at 1:02 p.m. She extended her greeting to the attendees and thanked the Board Representatives and staff for all their hard work. The meeting then proceeded in accordance with the established agenda (Attachment 1).
Chief Financial Officer Patricia Kelly reported on PBGC's financial and investment results for the third quarter. At the Chair's request, she also discussed the effect of certain multiemployer plans on the financial statements.
Deputy Director for Operations Vince Snowbarger presented an update on the asset revaluation work done for United Airlines and National Steel, as well as other work in this area. Mr. Snowbarger also advised the Board of the hiring of a new Director for the Benefits Administration and Payment Department, Phil Langham, who comes to PBGC from the position of Executive Directive of the City of Richmond Retirement System.
Board Secretary Judith Starr then reviewed the PBGC governance provisions of the Moving Ahead for Progress in the 21st Century Act ("MAP-21"). Ms. Starr described the progress PBGC is making, in coordination with the Board agencies, in implementing the provisions that affect the Board.
Board Representative Phyllis Borzi next addressed the action item for the meeting - the MAP-21 requirement that the Board designate an independent agency or organization to perform a peer review of PBGC's Pension Insurance Modeling System ("PIMS"). The statutory deadline is October 4. Ms. Borzi explained the work that had been done by the Board Representatives, their staff, and PBGC staff to identify potential peer reviewers. As a result of that work, the Board Representatives' recommendation is that the Social Security Administration ("SSA") be the Board's designee (Ms. Borzi further noting that SSA has indicated its willingness to do so). PBGC Deputy Director for Policy Laricke Blanchard expressed PBGC's concurrence in the recommendation, as did all the Board Representatives.
Accordingly, the Chair moved that the Board Representatives and PBGC pursue the engagement of SSA as the peer reviewer for PIMS. A quorum being present, the motion was duly seconded and passed.
Inspector General Rebecca Batts gave her report. She informed the Board of the improvements noted in the annual penetration testing and discussed areas of concern to her office relating to audit recommendations.
The Board then went into executive session with the Inspector General. The meeting concluded at 2:15 p.m.
MEETING OF THE BOARD OF DIRECTORS
OF THE PENSION BENEFIT GUARANTY CORPORATION
Wednesday, September 26, 2012
1:00 PM - 2:00 PM
- Introduction by Secretary Solis
- Investment and Financial Update
- Update - Benefits Administration and Payment Department - United Airlines, National Steel, and other plan asset revaluations
- Overview of Governance Changes in Moving Ahead for Progress in the 21st Century (MAP-21)
- Update - Peer Review of PIMS
- OIG Update
- Executive Session with OIG